Debt Consolidation-How to make the transfer of debts?

Take the rope off your neck: learn to do a debt transfer now!

In recent years, many Brazilians have taken advantage of the easy credit offered by banks to materialize the dream of the zero-car or the home. After the euphoria of a boom period, what is observed in the market is a very different scenario, with higher interest rates, restrictions on the granting of financing and an exponential increase in the default rate.

Are you one of those in the network? Look at your spending spreadsheet and no longer know how to get rid of debt? Do not let your problem become snowball! Often, financial rebalancing can come in much simpler than you imagine, for example through a simple debt transfer!

What, after all, is a debt transfer?

What, after all, is a debt transfer?

Called “portability of financing”, debt transfer is the change of your debts, from one bank to another, maintaining the same basic conditions of the previous contract but with the advantage of obtaining lower interest rates. This possibility has existed since 2006; however, has never been stimulated by the Central Bank, nor is it disclosed by the banks.

If you’ve screwed up and no longer know if you’ll be able to pay installments, refinancing vehicles or moving your property financing to another institution could be the start of a turnaround in your year!

Criteria for transferring debts: what can I transfer?

Anyone can transfer their car financing debt or real estate financing (however, in the latter case, the property must be ready.

How do I identify if I need to transfer debts?

How do I identify if I need to transfer debts?

The high competitiveness among banks means that the rates practiced in the market vary greatly from institution to institution. The constant oscillations in the Selic rate (referential interest rate in the country) also stimulate frequent changes in the rules and interest rates practiced by the largest banks in Brazil. This requires borrowed commonplace research on what indexes are being used. But a lot of attention: not always the public banks have the lowest rates.

In a strategy to attract customers, many private banks reduce their rates to near market indices (such as Caixa, which holds 70% of real estate financing in the country). The objective is to bring to the institutional clients capable of acquiring diverse banking products (such as credit cards, investment funds, and capitalization bonds).

The rule, therefore, is to always search! If you have found a lower rate, this is the time to change the lender! Remember that we are compound interest (that is, any small difference can be a huge saving!).

Step by step to exchange financing

  1. The first recommendation is to have total attention with Total Effective Cost – CET! This is the benchmark that will indicate the weight of your financing since it includes the nominal rate, administration fees and insurance!
  2. Central Bank Resolution No. 4,292 / 2013 (which provides for the portability of credit rules) does not allow any IOF charge on the change of creditor. Attention redoubled to be deceived!
  3. The whole procedure of transfer of debt is carried out by the bank in which the financing was initiated, not by you.
  4. Beware of the “married sale” costs: Many banks offer lower rates, but instead impose on the customer the purchase of a range of products or services that may invalidate the benefits of switching institutions. This strategy is illegal.
  5. The bank that will “lose” the debt can not retaliate against it for its option: if there is a sanction imposed by the home bank (such as a credit card lock or reduction by special check), report the institution to the Central Bank Ombudsman, through the website.
  6. Just remembering, once again: only the interest rate changes. Deadlines and outstanding balance remain the same!
  7. Banks have only 1 business day to provide the information requested by the client in relation to their debts.

Why not opt ​​for a verbal debt transfer?


These are the so-called “drawer contracts”, more common when the debtor wants to pass on his debt to another person, without, however, notifying the most interested party: the bank. Recall that this practice (verbal agreement of assignment of rights and obligations) has been illegal since 1964 and the indebted person who insists on this can be punished with the loss of good, in order to anticipate the payment of installments to be overcome, in addition to the complete restriction credit for 5 years.

In the case of the transfer of creditor, this practice does not apply, given the extreme control of banks in relation to their loan and financing agreements.

Do the transfer conditions change from bank to bank?

Do the transfer conditions change from bank to bank?

Yes and no! The terms of transfer are regulated by the Resolution of the Central Bank and may not vary from one institution to another. For example, if a bank charges you with IOF to make the change, report it because it is an illegal practice.

What changes is the rate applied from bank to bank, which makes this kind of feasible procedure. As an example, currently the CET of real estate financing at Debt-Loan Economic circulates at around 9.80% per annum. By making a simulation under the same conditions as those used at Caixa’s website at Santander, we reached an impressive 14.28% pa (go to 2 sites and compare yourself)!

See how you can make your pocket happy with a little research? No laziness, your financial health thanks!

Which bank to choose to make the debt transfer?

Finally, after understanding what, the conditions and advantages, now lack to know which banks make the transfer of debts.

The Central Bank mandates that all banks carry out the portability procedure, should the customer request it. However, the target bank is not obliged to accept the debt (although the interest gain means that virtually all financial institutions now receive funding from other banks).

Bank of Brazil, for example, has a simulator on its special page on debt transfer, through which the client can compare his car or home financing with that offered by BB. From there, just look for a local agency and receive all the necessary support to make this viable procedure. Debt-Loan Economic , Tatoloan and Pastenloan also have similar systems.

The sale of the debt to another bank may be viable for many Brazilians who have the rope around their necks. However, it is worth remembering that just changing the lender is not enough. Learning to make a strict financial control, having personal spending spreadsheet always updated, and not spending more than what you receive (savings culture) are key elements to get the rope around your neck for once!

Mortgage lending test 2017: cost differences of around 30,000 euros

Test has searched in its current construction financing test 2017 for providers with top conditions for home builders and buyers. The result: In the test winners, they can save tens of thousands of euros depending on the loan amount. But borrowers should not rely on the investigation alone. Also in 2017, only an individual comparison shows the best mortgage lending.

Test has reviewed a total of 76 banks, insurers and credit intermediaries with regard to their conditions in the past twelve months for various model cases for the current Building Finance Test 2017 (Financial Test 1/2017). The experts’ thoughts: If a bank was one of the lowest-priced providers in 2016, then the excellent conditions in 2017 are unlikely to change . A striking feature of the study is that the regional mortgage lenders can barely keep up with the supraregional ones. Only with a fixed interest rate of 20 years will Freie Financier München land as a regional provider behind Hypovereinsbank in the front seats.

Mortgage lending test 2017: High cost differences between the offers

In order not to achieve a one-sided result, Test not only calculated a model case in the Baufinanzierung 2017 test, but also used three loan sums (150,000 euros, 200,000 euros and 225,000 euros) and three different fixed interest periods (10, 15 and 20 years). The test results impressively illustrate why future homeowners should not waive a comparison in real estate financing. Between the best and most expensive offers, it can come to interest rate differences of 100 percent – or around 30,000 euros – especially with a long interest rate. Those who need an even larger amount of credit for their dream home, as considered in the test, pay by choosing the wrong mortgage lender even more at superfluous interest rates.

The Test experts used the interest rates of the banks over the past twelve months for their mortgage lending test. The providers with the most top rankings in this period reach the highest rating.

Best mortgage lending in 2017 compared to ten years fixed interest rate:

  • Enderlein
  • Planethyp
  • HypoVereinsbank
  • Santander Direct Bank
  • Targobank

Mortgage lending in 2017: interest rates could rise again in the medium term

Buying a house is not an acquisition that you can prefer or postpone. However, currently speaks for a lot, not to wait too long with your own property , if the possibility exists. On the one hand, real estate prices continue to rise in many places, whereas in some regions they are now stagnating. Increases in value of the house are no longer a guarantee. On the other hand, there is the possibility that interest rates could rise again soon . This will make house financing again more expensive. Therefore, it makes sense to start buying a house or apartment now.